Last week we showed that contrary to conventional wisdom, inflation - so widely and erroneously expected to soar after Trump's tariffs - had not only continued to decline, but the Fed's most closely watched metric, supercore PCE, just posted its biggest monthly drop since the covid crash.

And it's about to get even worse for the inflation fanatics: according to the South China Morning Post, American retail giants are now demanding that their Chinese suppliers shoulder half to 66% of the cost of US import duties, as the ongoing US-China trade war ramps up pressure on businesses' bottom lines.